Ford and Mattel Suspend 2025 Guidance Due to Trump Tariffs, Ford Faces $1.5B EBIT Hit

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Updated May 6, 2025, 08:35 AM

Ford Motor Co. has suspended its 2025 earnings guidance due to uncertainty surrounding President Donald Trump's tariffs, which the company estimates will reduce its adjusted earnings before interest and taxes (EBIT) by approximately $1.5 billion this year. The tariffs are expected to add $2.5 billion to Ford's overall costs, primarily due to increased expenses from importing vehicles from Mexico and China. Ford's shares fell 2.2% in premarket trading following the announcement. In the first quarter, Ford reported revenue of $40.7 billion, adjusted earnings per share of $0.14, and net income of $471 million. The Ford Pro commercial unit generated revenue of $15.2 billion, while the Ford Blue division, which sells internal combustion engine vehicles, had revenue of $21 billion. Ford's electric vehicle business reported an EBIT margin of -69% for the first quarter.

Mattel Inc., the maker of Barbie dolls and Hot Wheels cars, has also withdrawn its annual earnings forecast for 2025, citing the volatile macroeconomic environment and the evolving U.S. tariff landscape. The company plans to raise prices on some of its toys sold in the U.S., including Barbie and Hot Wheels, to offset the higher costs resulting from Trump's tariffs, which have been set at 145% on most Chinese-made products. Mattel reported first-quarter sales of $827 million and a loss of $40.3 million, or $0.12 per share. The company is accelerating its efforts to move production out of China, where about 40% of its toys are currently manufactured, and aims to reduce its China imports to the U.S. to below 15% by next year. The U.S. accounts for about 50% of Mattel's global toy sales, with around 20% of its goods sold there currently imported from China.

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Ford suspended its annual guidance because of uncertainty around President Trump's tariffs, saying the levies would cost the company about $1.5 billion in adjusted earnings before interest and taxes